Enhance Your Life Insurance Coverage with Riders

Written by Jennie Dalinis-Maxwell on February 10, 2010 & Posted in Life Insurance

Your cheap life insurance policy can be enhanced by adding low cost life insurance riders. Most riders can be added to any type of life insurance policy, but these riders are frequently offered with term insurance.

What Is a Rider?

Riders are special provisions that are not a part of the basic life insurance policy or contract. Riders can sometimes be added to an existing policy, but the cheapest life insurance riders are typically added at the inception of the policy.

To compare life insurance quotes right away, just take a moment to answer a few simple questions at /life.html.

Below are several examples of riders:

Accelerated Death Benefit Rider

Many life insurance policies include this rider. The accelerated death benefit rider allows for payments to be made to the insured in the event that the insured is diagnosed as terminally ill, requires long term care, or must be permanently confined to a nursing home. The payments may consist of all, or a portion of, the value of teh life insurance policy.

Any payments made to the insured, while living, are deducted from the benefit paid to beneficiaries at the time of death. This rider should not be confused with a long term care rider.

Long Term Care (LTC) Rider

The LTC rider is increasing in popularity. LTC insurance is also a stand-alone policy that can be purchased outside of a life insurance policy. LTC insurance can be expensive, but many see it as necessary insurance coverage due to increasing price of health care.

Added to your life insurance policy, the LTC rider can be a cost effective way to get LTC insurance coverage. If you are interested in adding the LTC rider to your policy, be sure to look at the terms of the rider to ensure that you are provided with the coverage that you want and need.

Critical Illness Rider

Pays an additional benefit, usually according to a schedule, if the insured is diagnosed with a critical illness. Illnesses might include heart attack, stroke, cancer, organ transplant, etc. Unlike the accelerated death benefit rider, the critical illness rider does not require the illness to be terminal.

Accidental Death and Dismemberment (AD&D) Rider

The AD&D rider is the most common of all life insurance riders. Often, this rider offers an added benefit in the event of an accidental death, or an additional amount should the insured lose any two limbs or the site of both eyes in an accident.

Waiver of Premium Rider

Depending on the provisions of the rider, this benefit allows the policy to stay in force, without premium payments, should the policy holder lose employment, or become critically ill or disabled.

Return of Premium Rider

At the end of of a term policy, this rider returns all or most of the premium paid throughout the duration of of the policy. Most term policies require that the policy be maintained for the full term in order to receive the returned premiums.

Guaranteed Insurability

Allows the policy holder to purchase additional coverage at pre-stated intervals without having to provide proof of insurability.

Now, armed with information that may help you find the best and cheapest life insurance policy for you, take a moment to complete the form above to begin the process of obtaining your life insurance quotes.

Sources

http://www.iii.org/index.html

http://www2.iii.org/glossary/

About the Author

Jennie Dalinis-Maxwell has worked in the insurance industry for 20 years. Jennie has worked as an Agent/Broker and also for Health and Life Insurance Companies. Jennie has been active in professional organizations to include Clark County Association of Health Underwriters and Northern Nevada Association of Health Underwriters. Jennie participates in many networking organizations on both a national and local level.

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